Energa S.A.

Report Publication Announcement • Mar 1, 2017

Current Report No. 16/2017

Date of Preparation: 01.03.2017

Subject: Closing of a subscription for Eurobonds issued by ENERGAFinance AB (publ)

Legal Basis: Article 17, Section 1 of the Market Abuse Regulation -confidential information

In reference to Current Report no. 14/2017 of 20 February 2017, theManagement Board of ENERGA SA, which will act as guarantor of bondsissuance, hereby reports that the bookbuilding process for the Eurobondsto be issued under the updated EMTN Program has been completed.

The issue will be carried out by ENERGA Finance AB (publ). The followingparameters have been set during the bookbuilding process:

1.Issue amount: 300,000,000 (in words: three hundred million),

2.Issue currency: EUR,

3.Maturity: 10 years,

4.Interest periods: annual,

5.Yield: 2.250 per cent.,

6.Coupon: 2.125 per cent.,

7.Issue price: 98.892 per cent.

This transaction will be finalized conditional upon, among others,signing of a subscription agreement in the near future. The finalsettlement of the transaction is planned for 7 March 2017. ENERGAFinance AB (publ) intends to list the bonds on the Luxembourg StockExchange.

The proceeds will be designated for general corporate purposes. In thiscontext, they will provide support for the execution of the ENERGAGroup's Strategy in 2016-2025, in which more than 60% of the capitalexpenditures will be channeled toward the development and modernizationof the distribution grid. The proceeds will also serve to enhance theGroup's financial security.